Lewis Votes “No” To Budget Spending Increases

Raleigh-Representative David Lewis voted against Senate Bill 1741-The State Budget Act.

The House version of Senate Bill 1741 spends $18.9 billion dollars-an increase in spending of $1.639 billion dollars or 9.5% over the current year.

The increase in spending is funded by tax collections exceeding last year’s projections. Unfortunately, it also commits future or recurring spending of $359 million dollars.

Under the Constitution, North Carolina must have a balanced budget. By creating spending that must be continued next year and years to come without revenue to fund the expenditure, the General Assembly will be forced to cut programs next year or, more likely, increase taxes.

It is not fiscally responsible to spend the one time windfall tax collections without setting up any safeguards to prevent future shortages in essential programs In three of the past four years, the governor has forced “reversions” or returning of money already appropriated to schools, cities, and counties.

The Budget Act also continues most all of the “temporary” taxes enacted in 2001. Temporary taxes that were supposed to be removed completely when economic conditions and tax collections improved.

Lewis, a sponsor of the Taxpayer’s Protection Act of 2005, supports safeguards that prevent state spending, except in times of emergency, from growing more than the combination of inflation plus population growth. Using this calculation, state spending would have been allowed to grow $943 million or 5.65%. Instead, spending grows $1.639 billion or 9.5%.

“The people of this state expect us to spend their money, tax money wisely. Just like they constantly review their personal expenditures to be sure they get what the pay for, the General Assembly should look at how each dollar is spent. Instead, our flawed process deals only with how much more we should spend over the previous year. Never do we ask, should we spend this money at all or can we get a better return by spending the money in a more efficient way,” said Rep. Lewis.

“Too much spending, even on worthwhile projects, brings about higher taxes. Higher taxes take money from people and hurt families,” said Lewis.

The House version of Senate Bill 1741 spends more than both the Governor requested and the Senate agreed to spend.

The Bill passed the House and will now go to Conference between the House and Senate.

Rep. Lewis represents House District 53.